Indian stocks sent the benchmark equity index to its highest level in five weeks, as motorcycle makers and financial companies advanced amid the expiration of monthly derivative contracts. Bajaj Auto, the top gainer on the BSE Sensex, rose to its highest level in six months. Larsen & Toubro rallied the most in two months after Prime Minister Modi announced measures to upgrade infrastructure in cities. Housing Development Finance Corp, the biggest mortgage lender, advanced to an 11-week high. The Sensex rose 166.30 points, or 0.6 per cent, to 27,895.97, its highest close since May 22, capping its ninth advance in 10 days.
The gauge has climbed 5.8 per cent since June 11 from near a seven-month low amid optimism the progress of monsoon rains will help check food prices and give the Reserve Bank of India more room to cut borrowing costs.
